First-Time Buyer? What to Know Before You Buy New

Talk to a lender before you shop, know who represents you, ask what's included versus upgraded, budget for costs beyond the down payment, and plan around the build timeline. Most people buying from a builder use a regular mortgage at closing, not a construction loan.

What to know before buying new construction?

If you're buying your first home, you're in good company, and you're also a little rarer than you used to be. NAR's 2025 profile found first-time buyers made up 21% of purchases, a record low, and the median first-time buyer was 40 years old.

Here are the five things I'd want you to know before you walk into any model home.

1. Talk to a lender before you shop

Know your comfortable payment before you fall for a plan. A lender can tell you which loan types fit you and whether you qualify for down payment help. In North Carolina, the NC Housing Finance Agency offers programs through approved lenders, including options for first-time buyers.

2. Know who represents you

The builder's sales consultant represents the builder. You can bring your own agent. If you want one, bring them or register them before your first visit, because many builders tie agent representation to that first visit.

3. The model home isn't the standard home

Models show upgrades and furniture. Ask "Is this included?" about anything you like, and get the standard features list in writing.

4. Budget beyond the down payment

Plan for earnest money, closing costs, blinds, any appliances not included, and moving. Keep savings left over after closing.

5. Plan around the build

A home being built can take months. Your finances need to stay steady the whole time. No new credit cards, car loans or financed furniture until after closing.

Can I afford a $300k house on a $70k salary?

Maybe. It depends on your rate, down payment, taxes, insurance, HOA dues and your other debts.

Lenders use your debt-to-income ratio to decide: your total monthly debt payments, including the new housing payment, divided by your gross monthly income. The CFPB notes that different loans and lenders set different limits.

I'd rather you hear a real number from a lender than a guess from me. Then decide whether that payment feels comfortable, not just approvable.

How hard is it to get a construction loan as a first time home buyer?

Good news: if you're buying from a builder in a new community, you usually don't need one.

A construction loan is for building on land you own, with your own contractor. When you buy a home from a production builder, the builder finances the construction. You use a regular purchase mortgage that closes when the home is finished.

Construction loans for a custom build are a different animal. They often involve more paperwork, more cash up front and a longer timeline. The Census Bureau's data shows owner-built custom homes took about 14.3 months from permit to completion in 2025, compared with 7.4 months for homes built for sale.

Where to start

1. Pull your credit reports and fix any errors.
2. Talk to a lender and get a verified preapproval.
3. Ask about NCHFA down payment programs.
4. Decide whether you want an agent, and bring them in early.
5. Then go see homes.

Who's writing this. I sell new homes for D.R. Horton at Collins Ridge in Hillsborough, so I represent the builder, not you. This guide is general education from my years on job sites and in sales. It isn't legal, tax or lending advice, and it doesn't describe any specific home, price or incentive. Check the sources linked below, and talk with your own lender, agent or attorney before you decide.